Apple Inc. has reported stronger-than-expected revenue for its fiscal fourth quarter, marking an encouraging start for new CEO John Ternus, who took over the company's leadership in September.
The upbeat results came as several major technology companies, including Alphabet, Amazon and Intel, reported disappointing quarterly performances.
The California-based technology giant earned $30.71 billion, or $2.10 per share, during the July-September quarter, up 12 percent from $27.47 billion, or $1.85 per share, in the same period last year. Apple said the latest earnings included 5 cents per share from tariff refunds.
Revenue also increased 12 percent to $114.5 billion from $102.5 billion a year earlier.
According to a FactSet poll, analysts had projected earnings of $1.99 per share on revenue of $113.4 billion.
Jacob Bourne, an analyst at Emarketer, said Apple's strong performance came amid a recent sell-off in technology stocks, as investors questioned the huge costs and uncertain returns associated with the artificial intelligence boom pursued by other major technology companies.
He said record iPhone revenue and strong growth in China demonstrated the resilience of Apple's business.
While competitors face investor concerns over their massive AI investments, Bourne said Apple's relatively modest spending on AI infrastructure was helping it preserve cash flow.
He added that partnerships with companies such as Alphabet could strengthen Apple's AI capabilities without exposing it to the same level of financial risk faced by its rivals.
Despite the strong quarterly performance, Apple warned that its closely watched gross margin, which stood at 47.9 percent in the fourth quarter, would decline to between 45 percent and 46 percent in the December quarter.
The company attributed the expected decline mainly to higher memory costs and expenses associated with the release of its AI-powered Siri.
Apple shares were initially little changed after the earnings announcement but fell 2.6 percent to $329.60 during the earnings call.
The stock had already closed down 1.8 percent at $338.32 in regular trading.